COLOMBO: Sri Lanka’s economy grew by 7.4 per cent last year, down from the projected 7.8 per cent but higher than 7.2 per cent recorded in 2013, according to the Central Bank’s (CB) annual report for 2014.
The report, presented to Finance Minister Ravi Karunanayake by CB Governor Arjuna Mahendran on Wednesday, said that amidst uneven developments in the global economy, continued domestic economic activity helped sustain growth in the industry and services sectors, while adverse weather conditions dampened the performance of the agriculture sector during the year.
GDP per capita (income) increased to US$ 3,625 in 2014 from $3,280 in the previous year.
Inflation remained at single digit levels for the sixth consecutive year, with year-on-year and annual average inflation declining to 2.1 per cent and 3.3 per cent, respectively, by end 2014, from 4.7 per cent and 6.9 per cent, respectively, at the end 2013, the report said.
“Prudent monetary policy as well as the considerable decline in global commodity prices in the second half of the year enabled the deceleration of inflation to low single digit levels during the year,” it said.
In nominal terms, the trade deficit increased to $8.3 billion in 2014 from $7.6 billion in the previous year, as a result of a higher increase in the expenditure on imports compared to the increase in earnings from exports.
